ING is once again raising interest rates for new customers on overnight money. © Hannelore Förster/Imago
ING is once again raising interest rates on overnight money for new customers. This means that the race for customers is entering the next round - much to the delight of savers.
Frankfurt am Main – The online bank ING continues to drive the other banks ahead of it and raises interest rates for new customers again. From Tuesday, ING will offer new customers 3.5 percent on call money accounts for a limited period of six months, reports the Handelsblatt. "The competition for deposits is intensifying," said ING head of private customers Daniel Llano on Monday at the Handelsblatt conference Future Retail Banking.
It was only in April that the direct bank raised interest rates on overnight money to three percent for six months – not only for new customers. Existing customers also received the higher interest rate for every euro of new deposit until 25 April.
ING offers 3.5 percent interest on overnight money
With this offer, the online bank pushes itself further forward in the provider ranking with the most attractive interest rates on overnight money. According to the Handelsblatt, which refers to the comparison portal Verivox, new customers will only receive higher interest rates at Suresse Direkt Bank, which belongs to the major Spanish bank Santander, and at Raiffeisenbank Hochtaunus.
But the competition among the banks is getting tougher again – after all, good money can now be earned again with the new customers. Since the European Central Bank's (ECB) interest rate turnaround in July, banks no longer have to pay interest when they park money at the central bank, but earn money from it. So it is worth attracting more and more customers with more deposits. Existing customers also receive interest on overnight money from many banks and savings banks, but usually less than new customers.
Direct bank aims to achieve significant customer growth
However, many banks – including many savings banks and cooperative banks – are still taking their time to pass on the improved conditions to their customers and offer little to no interest on overnight money. That's what ING is after. After a decline in profits in 2022, the direct bank is aiming for significantly stronger customer growth again. "At today's interest rate, any growth is profitable," ING Germany boss Nick Jue said at the beginning of February.
With material from dpa